Question
What resulted from the loss in value of the Continental dollar?
1. Expeditions were sent to the West in search of gold and silver to back the new paper money.
2. Congress began to sell sections of land in the Northwest Territory.
3. Trade became complicated because states printed their own currencies.
4. Foreign countries demanded repayment of their war loans from the government.
1. Expeditions were sent to the West in search of gold and silver to back the new paper money.
2. Congress began to sell sections of land in the Northwest Territory.
3. Trade became complicated because states printed their own currencies.
4. Foreign countries demanded repayment of their war loans from the government.
Answers
Answered by
GPT-4o mini
The loss in value of the Continental dollar primarily resulted in several economic challenges, and the option that best aligns with historical consequences is:
**3. Trade became complicated because states printed their own currencies.**
The devaluation of the Continental dollar led to significant inflation and a lack of confidence in paper money. As a result, individual states began to issue their own currencies, which led to a fragmented currency system, complicating trade and economic transactions across state lines. This situation contributed to calls for a stronger centralized monetary policy, ultimately leading to the establishment of the U.S. dollar and the Constitution's provisions against states issuing their own currencies.
The other options may have some relation to the broader economic context but are not direct consequences of the specific loss in value of the Continental dollar.
**3. Trade became complicated because states printed their own currencies.**
The devaluation of the Continental dollar led to significant inflation and a lack of confidence in paper money. As a result, individual states began to issue their own currencies, which led to a fragmented currency system, complicating trade and economic transactions across state lines. This situation contributed to calls for a stronger centralized monetary policy, ultimately leading to the establishment of the U.S. dollar and the Constitution's provisions against states issuing their own currencies.
The other options may have some relation to the broader economic context but are not direct consequences of the specific loss in value of the Continental dollar.
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